Yuletide: Resident, trader accuses bank of hoarding cash

Banks in Ebonyi State have been accused of hoarding cash to maximize profits during the yuletide season, leaving many customers stranded.

Investigations revealed that customers, particularly those from rural areas, faced significant challenges when attempting to withdraw money for business and festive purposes.

Some bank customers reported being told they could only withdraw as little as N5,000 from ATMs and N10,000 from bank counters, while other banks restricted counter withdrawals to N20,000.

One affected customer, Mrs. Rose Nworie, who deals in foodstuff, explained that she needed over N500,000 for her business but was only able to withdraw N20,000.

“I came to this bank with the intention of withdrawing over N500,000, but they told me there was no money and could only give me N20,000 inside the bank. At another bank, they offered me only N10,000. I need this money to buy foodstuffs in the villages, but they only accept cash—no bank transfers.”

The Chairperson of the Ebonyi State Market Women’s Association, Chief Mrs. Nneka Itumo, alleged that bank workers were colluding with Point of Sale (POS) operators to hoard cash. “Bank transactions have effectively shifted to POS operators in Abakaliki and its surrounding areas,” she said. “It’s nearly impossible to withdraw more than N100,000 at once from any bank in the capital or nearby communities.”

She further claimed that banks were sending large sums of money to POS agents in exchange for hefty commissions. “This trend is worsening the economic hardships faced by the public, especially as traders now prefer dealing with POS operators who offer quicker transactions than banks.”

Itumo called for government intervention, saying that this situation was exacerbating the difficulties of people already struggling with economic challenges. “The banks are hoarding cash, as they did last year, while POS operators continue to profit at the expense of customers.”